Britain's inflation rate fell as expected in June on lower utility bills, but the figures are still likely to keep alive expectations of further interest rates rises ahead.
The Office for National Statistics said today that consumer prices rose 0.2 per cent on the month, bringing the annual rate down a tenth of a point to 2.4 per cent, still above the central bank's target.
While economists and the central bank had expected lower household bills and higher fuel prices, there was also a significant upward impact on inflation from higher furniture prices.
These went up at a record annual rate in June ahead of the usual summer sales, pointing to continued strong demand in the housing market. The core CPI annual rate, which excludes energy, alcohol, food and tobacco prices, rose to 2 per cent - its highest since March 1997 - from 1.9 per cent in May.
The old retail price inflation rate rose unexpectedly to 4.4 per cent as housing costs rose thanks to dearer mortgages.